Ikea hikes UK prices as sterling slump drives inflation

STOCKHOLM, Oct 16 (Reuters) - Furniture retailer IKEA Group has raised prices in Britain to compensate for a slump in sterling after the country's decision to leave the European Union, which has pushed up import costs.

An IKEA spokeswoman said prices had been increased by 3%. IKEA imports many of the products it sells in Britain, meaning a fall in the pound raises costs for its business there.

The Swedish group had sales of around €34 billion (£30.2 billion) in its fiscal year through August.

Sales data for IKEA's British business for that financial year has yet to be published. The unit had sales of £1.72 billion ($2.29 billion) in the previous financial year.

Sterling's slide since the Brexit vote last year saw British inflation hit its joint-highest level in more than five years in August. September data is due on Tuesday with a further rise in the annualised consumer price index expected.